Question
Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts Industries during 2016: Prior service cost at Jan. 1,
Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts Industries during 2016: |
Prior service cost at Jan. 1, 2016, from plan amendment at the | |||
beginning of 2013 (amortization: $3 million per year) | $ | 15 | million |
Net lossAOCI at Jan.1, 2016 (previous losses exceeded previous gains) | $ | 108 | million |
Average remaining service life of the active employee group | 10 | years | |
Actuary's discount rate | 4 | % | |
($ in millions) | Plan | ||||||
PBO | Assets | ||||||
Beginning of 2016 | $ | 760 | Beginning of 2016 | $ | 560 | ||
Service cost | 66 | Return on plan assets, | |||||
5% (7% expected) | 28.0 | ||||||
Interest cost, 4% | 30.4 | ||||||
Loss (gain) on PBO | (17 | ) | Cash contributions | 104 | |||
Less: Retiree benefits | (38 | ) | Less: Retiree benefits | (38 | ) | ||
End of 2016 | $ | 801.4 | End of 2016 | $ | 654.0 | ||
(For all requirements, enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) |
Required: |
1.1. | Determine Douglas-Roberts' pension expense for 2016. (Amounts to be deducted should be indicated with a minus sign.)
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